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Spatial competition and market share: an application to motion pictures

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  • Darlene Chisholm

    ()

  • George Norman

    ()

Abstract

This paper presents an empirical assessment of movie-theatre attendance in two major metropolitan markets and provides strong support for the importance of spatial characteristics in determining attendance. We consider the hypothesis that attendance at a particular movie theatre reflects a tension between two effects: a negative competition effect and a positive agglomeration effect. We find evidence that the competition effect dominates. Further, we identify a pattern of systematic spatial decay in the impact of this effect on demand. Copyright Springer Science+Business Media New York 2012

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File URL: http://hdl.handle.net/10.1007/s10824-012-9168-4
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Bibliographic Info

Article provided by Springer in its journal Journal of Cultural Economics.

Volume (Year): 36 (2012)
Issue (Month): 3 (August)
Pages: 207-225

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Handle: RePEc:kap:jculte:v:36:y:2012:i:3:p:207-225

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Web page: http://www.springerlink.com/link.asp?id=100284

Related research

Keywords: Spatial competition; Competition effect; Location choice; Motion-pictures industry studies; L11; D43; L82;

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References

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  1. BEN-AKIVA, M. & de PALMA, A. & THISSE, J.-F., 1985. "Spatial competition with differentiated products," CORE Discussion Papers 1985017, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
  2. Holbrook, Morris B, 1999. " Popular Appeal versus Expert Judgments of Motion Pictures," Journal of Consumer Research, University of Chicago Press, vol. 26(2), pages 144-55, September.
  3. Darlene C. Chisholm & Margaret S. McMillan & George Norman, 2006. "Product Differentiation and Film Programming Choice: Do First-Run Movie Theatres Show the Same Films?," NBER Working Papers 12646, National Bureau of Economic Research, Inc.
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  7. Arturs Kalnins, 2003. "Hamburger Prices and Spatial Econometrics," Journal of Economics & Management Strategy, Wiley Blackwell, vol. 12(4), pages 591-616, December.
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  17. Howard Smith, 2004. "Supermarket Choice and Supermarket Competition in Market Equilibrium," Review of Economic Studies, Oxford University Press, vol. 71(1), pages 235-263.
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  19. David A. Reinstein & Christopher M. Snyder, 2005. "THE INFLUENCE OF EXPERT REVIEWS ON CONSUMER DEMAND FOR EXPERIENCE GOODS: A CASE STUDY OF MOVIE CRITICS -super-* ," Journal of Industrial Economics, Wiley Blackwell, vol. 53(1), pages 27-51, 03.
  20. C. Edward Fee, 2002. "The Costs of Outside Equity Control: Evidence from Motion Picture Financing Decisions," The Journal of Business, University of Chicago Press, vol. 75(4), pages 681-712, October.
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Cited by:
  1. Fernanda Gutierrez-Navratil & Victor Fernandez-Blanco & Luis Orea & Juan Prieto-Rodriguez, 2011. "How do your rivals' releasing dates affect your box office?," ACEI Working Paper Series AWP-04-2011, the Association for Cultural Economics International, revised Nov 2011.
  2. Mitsuru Sunada, 2012. "Competition among movie theaters: an empirical investigation of the Toho–Subaru antitrust case," Journal of Cultural Economics, Springer, vol. 36(3), pages 179-206, August.

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